Home > News > Asset Allocation > Malaysia’s KWAP Seeks to Raise Foreign Portfolio to 15%
Asset Allocation

Malaysia’s KWAP Seeks to Raise Foreign Portfolio to 15%

Fund in early discussions with China’s Alibaba.

By Chris Butera

To boost performance after sluggish domestic returns, Malaysia’s $30 billion pension fund aims to boost the overseas section of its portfolio from its current 12% to as much as 15%, Reuters reports.

In 2018, Malaysia’s Retirement Fund Inc., known locally as Kumpulan Wang Persaraan (KWAP) will review its current asset allocation strategy and then decide which foreign investments to further allocate to. Current foreign investments include app-based cab company UBER, KWAP’s first foreign disruptive-technology investment.

“The target is to increase by 7% to 19%, but we might look at 15%, which is more realistic,” KWAP CEO Wan Kamaruzaman Wan Ahmad told Reuters at the Reuters Global Investment 2018 Outlook Summit.

Ahmad declined to specify which regions or sectors the fund is considering, although he did note that it was in early talks with Chinese e-commerce firm Alibaba Group Holding Ltd. in participating in a fund it’s looking to raise regarding regional small businesses in the Digital Free Trade Zone.

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Home > News > Asset Allocation > OMERS Private Equity to Buy Majority Stake in Trescal
Asset Allocation

OMERS Private Equity to Buy Majority Stake in Trescal

Deal is OMERS Private Equity’s first France-based investment.

By Chris Butera

The $85 billion Ontario Municipal Employees Retirement System’s (OMERS) private equity investment arm entered into an agreement Tuesday with independent private equity company Ardian, which grants OMERS exclusivity to acquire a majority stake in international calibration service specialist Trescal.

“With Ardian’s support, Trescal has expanded its footprint to new continents (South and North America, and Asia) and completed 25 acquisitions worldwide, reinforcing its global customer service offering,” Oliver Delrieu, CEO of Trescal, said in a statement. “We sincerely thank them for their constant support, availability, and enthusiasm. The team at OMERS Private Equity has demonstrated a depth of knowledge and a sincere interest in our future development.”

The proposed transaction, which values Trescal at roughly €670 million ($786.78 million), will see senior management make an equity re-investment into Trescal in tandem with OMERS Private Equity.

The exclusive agreement is also the Canadian-based OMERS Private Equity’s first investment in France.

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“We have followed Trescal since 2014, and have been impressed by the quality and track record of Trescal’s management team led by Olivier Delrieu,” Jonathan Mussellwhite, co-head of OMERS Private Equity, Europe, said in a statement. “This is our third consecutive bi-lateral off-market transaction and OMERS Private Equity’s first investment in France; a significant and important market for us as we continue to expand our global investment footprint. We look forward to supporting Olivier and the team at Trescal in their continued development as a global market leader in calibration services.”

However, several conditions still need to be met for the proposed transaction, including customary approvals by the antitrust authorities and signing of a final agreement. The proposed acquisition is being fully underwritten by OMERS Private Equity.

As of December 2016, OMERS Private Equity has $11 billion of capital invested.

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